Jim Cramer’s top 10 things to watch in the stock market Monday

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My top 10 things to watch Monday, July 8

  1. Boeing pleaded guilty to criminal fraud charges stemming from the deadly 737 Max crashes in 2018 and 2019. The aircraft maker agreed to pay a $243.6 million fine. Prosecutors said Boeing would also have to invest at least $455 million in compliance and safety programs, among other conditions. The plea deal doesn’t really mean much in regard to Boeing’s planned Spirit AeroSystems acquisition.
  2. After months of talks, Paramount Global agreed to merge with Skydance. The deal ends the Redstone family control of the movie studio and media company, which includes the CBS broadcast network and cable TV networks such as MTV and Nickelodeon. The transaction puts Skydance founder David Ellison, son of Oracle founder and billionaire Larry Ellison, in the drivers’ seat.
  3. Wall Street was higher early Monday after finishing higher for the holiday-shortened trading week. Tech stocks lead the way, with the Nasdaq 3.5% for the week. Meta Platforms soared nearly 6% on Friday. Good revenue guidance and an upbeat tone are expected. In my Sunday column, I talked about how to learn to love the triumph of Big Tech.
  4. Wells Fargo raised its price targets on Club names Meta ($625 from $593; keeps buy rating) and Alphabet ($187 from $168; keeps hold). The analysts see strong second-quarter advertising trends at Meta. They are also optimistic about Alphabet’s upcoming quarter but think a big beat like Q1 will be tough. Both companies are set to report their latest financial results later this month.
  5. Big week ahead: Earnings season is back. Three of the four big money center banks report this coming Friday, including Club name Wells Fargo. The government also delivers key data on consumer and wholesale inflation. Federal Reserve Chairman Jerome Powell testifies before the Senate Banking Committee on Tuesday and the House Financial Services Committee on Wednesday.
  6. Two big price target hikes for Club name Nvidia: UBS ($150 from $120; keeps buy) and Wolfe Research ($150 from $125; keeps buy). It’s been a tumultuous time for the stock. But analysts for both firms see strong demand continuing for Nvidia’s artificial intelligence chips.
  7. Huge preannouncement to the upside. Corning raised guidance for second-quarter revenue and earnings, citing better-than-expected generative AI uptake. Corning makes glass for big-screen TVs; mobile phones, including Club name Apple; and optical fiber. Corning shares soared more than 6%.
  8. Guggenheim downgraded ServiceNow to sell from neutral and kept its $640 price target. Heresy. The analysts cite the enterprise software company’s rich valuation and tough second half. They don’t see a generative AI pick-up.
  9. Eli Lilly plans to buy inflammatory bowel diseases (IDB) drug developer Morphic for $3.2 billion in cash. Morphic shares soared 75%. The company is in phase two trials for IBD and Crohn’s Disease. Is it better than Rinvoq by AbbVie?
  10. JPMorgan likes Devon Energy, raising its price target to $64 per share from $62 and keeping its buy rating. The analysts expect a good quarter.  The Club owns Coterra Energy, which has more optionality between oil and natural gas production.

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